Gold, silver prices fall on selling, weak global cues

Mumbai-India (Mar 27) Gold and silver extended losses in the Mumbai bullion market on Thursday on persistent offerings by stockists on the back of lower global cues.

Standard gold (99.5 purity) dropped by another Rs 205 to quote at Rs 28,455 per 10 grams at 1700 hrs from Wednesday's level of Rs 28,660.

Pure gold (99.9 purity) fell by Rs 213 to Rs 28,600 per 10 grams as compared to Rs 28,813 on Wednesday, according to Riddisiddhi Bullions Ltd.

Silver (.999 fineness) tumbled by Rs 900 per kilo to Rs 42,600 at 1700hrs from 43,500 on Wednesday.

In New York, gold futures fell yesterday to their lowest settlement in nearly six weeks, pressured in part by a strength in the dollar, but the metal found support at $1,300 an ounce on strong demand from China and indications the European Central Bank may support more economic stimulus measures.

Gold for April delivery fell $8, or 0.60 per cent, to settle at 1,303.40 an ounce on the comex division of the New York Mercantile Exchange after a session low of $1,300.90.

May silver shed 20 cents, or one per cent, to $19.78 an ounce -- the lowest settlement since February 4.